RPI

Raspberry Pi Holdings PLC

Technology First-pass screen £1.2bn

440/1000 Overall fit

AI beneficiary 35% 40

Operating leverage 25% 45

Valuation 25% 40

Downside protection 15% 55

First-pass take

Emerging AI products (H2 2024) lack revenue materiality. Cyclical hardware business declined EBITDA 15% in FY24 amid inventory correction, with 41% customer concentration. IPO valuation (17x EBITDA) appears fair-to-full; strong balance sheet ($46m net cash) provides downside protection. Fixed-cost leverage expected 2025+ if OEM strategy executes, but unproven.

Flags

ai-pivotcyclicalcustomer-concentrationpost-ipoinventory-buildupno-fcfhardware-cycle